Stanley Kang says the garment industry needs to adopt a new approach.
DESPITE higher production costs, Thailand can still serve as a hub for apparel production and trading in Asean by offering complete solutions with creativity and innovation, a key player said last week.
“Value-adding must be adopted, otherwise we cannot have a place in this competitive market,” Stanley Kang, senior manager of Tuntex Textile (Thailand) Co, a leading textile and garment manufacturer in Asean, said last week.
Thailand will not be a place for low-end production so it needs to focus more on creativity and innovation, he said.
The garment industry should not limit itself to production, but must become a service provider by offering innovation and consulting on fabrics and designs.
Thailand has to deal with higher costs. The Bt300 minimum wage introduced early this year has driven many producers into expanding operations in other Asean countries.
Thailand can still be a centre for the production and trading of textiles and apparel if enterprises learn to develop themselves for not only producing goods but also providing “total solutions” to customers.
For instance, the company is not only an original equipment manufacturer for many global apparel brands, but it also gives advice on fabrics and designs and instils more innovation in its products. To ensure that Thailand can keep its customers and be a strong centre for textile and garment production and trading, operators have to train their employees, adopt more technology for their production and provide quality customer service.
The past 15 years has seen stiff competition because China’s wages are much lower.
The company has tried to adjust by becoming more innovative. Now it has become a service provider in the textile and apparel business.
In the past, the company only produced goods and then sold them, but now it offers both services and products.
To become a service provider, it had to understand the demands of customers and then create new products for them.
As the company is a link in a supply chain, quality, stability and service are important for it to retain its position in the global market.
By offering added value and services, Tuntex (Thailand) is projected to grow 10 per cent next year, although there are some concerns about the global economic slowdown.
This year, the firm targets boosting sales 30 per cent to Bt1.4 billion by upgrading product quality, serving customers with efficiency and keeping prices reasonable.
The firm will continue to maintain a balance in its businesses in Asean. Besides Thailand, it also runs plants in Indonesia, Vietnam and Cambodia.
Myanmar shows potential for the future but the company needs to take time to study this market. Although Myanmar is one of the booming countries, the firm is waiting for a clearer investment law and stronger financial system.
